Office

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Glasgow City Core is the largest office sub-market outside of London. The city provides high quality, competitively-priced workspaces. Office rental costs remain competitive in comparison to many UK cities with property costs typically 71% lower than London (West End), 4.5% lower than Manchester and 8.5% lower than Edinburgh (Cushman & Wakefield UK Office Market Snapshot Q4 2018).

City core office market averages 2018

12 Month sales volume Prime yield Prime rent (sq ft) Vacancy rate
£455.7m (€523.16m) 5.25% £30.00 (€34.44) 9.1%

(CoStar – January 2019)

City centre prime office rents & yields – Q4 2018

Location Rent per sq ft
(£)
Rent per sq m
(€)
Yield
Glasgow 32.00 371.00 5.00
London (West End) 110.00 1,362.00 3.75
Edinburgh 35.00 433.00 4.50
Manchester 33.50 415.00 4.75
Birmingham 34.00 421.00 4.75
Bristol 35.00 427.00 4.75
Leeds 30.00 371.00 5.00
Cardiff 25.00 309.00 5.50
Newcastle 24.25 297.00 5.50
Reading 38.50 477.00 5.00

(Cushman & Wakefield, UK Office Market Snapshot, 4th Quarter, 2018)  

Occupier market

2018 was a record breaking year for Glasgow with over 1.4m sq ft (130,064 sq m) of city centre space leased. A number of significant pre-lets bolstered the market including Barclays’ 470,000 sq ft (43,664 sq m) purchase at Buchanan Wharf, a major pre-let of 187,000 sq ft (17,373 sq m) to HMRC at Atlantic Square and Clydesdale Bank’s 110,995 sq ft (10,312 sq m) pre-let at 177 Bothwell Street.

Grade A office pipeline

Work is underway on a number of developments across the city to deliver nearly 2 million sq ft of Grade A office space – with over 1 million sq ft coming online in 2020/21.

Pipeline Projects

Address Size (sq ft) Size (sq m) Developer
Buchanan Wharf 470,000 43,664 Drum Property Group
177 Bothwell Street 313,000 29,079 HFD Property Group
Atlantic Square (Buildings 1 & 2) 260,000 24,155 BAM Properties, TCP Developments, LGIM Real Assets
One Central (Argyle Street) 280,000 26,012 Osborne + Co
33 Cadogan Street (The Grid) 275,000 25,548 M&G Real Estate
67 Sauchiehall Street 130,000 12,077 Formal Investments Ltd
64 Waterloo Street (The Still) 100,000 9,290 Whiteburn Projects Ltd
20 Cadogan Street (Cadworks) 95,500 8,872  FORE Partnership

 

Alongside the Grade A office pipeline, Glasgow has seen a flurry of high quality refurbishments completed, including:

  • The Garment Factory at Montrose Street (53,800 sq ft)
  • 1 & 3 Atlantic Quay (106,200 sq ft)
  • 123 St Vincent Street (60,700 sq ft)
  • 310 St Vincent Street (78,941 sq ft)
  • 58 Waterloo Street (31,068 sq ft)
  • 191 West George Street (88,300 sq ft)

Investment market 

Investment activity in Glasgow has been very strong in 2018 with 49 sales transactions totaling £455.7 million, a year on year increase of 28%, with investors availing an impressive average yield of 5.7% (CoStar – Jan 2019).

In recent years, Glasgow has seen a significant increase in interest from investors in Asia, New Zealand, the Middle East, Europe and America. Glasgow’s appeal for international investors is due to a number of factors including reduced competition from UK Institutions, value for money, a weakened pound, and strong local market fundamentals.


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